An analysis by specialty lender PDL Capital concluded that ride-sharing apps like Uber present no material threat to the value of taxi medallions.

According to PDL, there is no long-term threat to the publicly-traded stocks involved with taxi medallion financing, and the current selloff in medallion stocks are overdone and offer compelling values at current prices.

Although new supply in taxi markets may impact taxi medallion revenue, it will not materially reduce the oversupply of drivers for limited medallion access, according to the report.

Lawrence Meyers, CEO of PDL Capital, said substantial disincentive exists for taxi medallion drivers to move to ride-share. UberX fares generate less revenue than taxis, and the costs to buy, maintain and insure a vehicle are so great, that ride-share drivers routinely generate 25% less take-home pay than taxi medallions.

That’s why taxi medallion drivers sampled Uber and returned to leasing, according to fleet sources that Meyers interviewed. Consequently, he said, fleet owners will continue to perform on taxi medallion loans, thus maintaining taxi medallion values over the long term.

To view the full PDL Capital report, click here.